The planned restart of Jervois’ São Miguel Paulista refinery is set to restore Brazilian capacity for refined nickel and cobalt while creating a potential supply connection with European battery and specialty-metal markets. Located in Brazil, the facility is currently the only South American project recognised as a strategic project under the EU Critical Raw Materials Act. Rather than relying solely on domestic mine production, São Miguel Paulista is designed to process imported mixed hydroxide precipitate (MHP) and cobalt hydroxide.
At planned full output, the refinery is expected to produce approximately 12,000 tonnes of Class 1 nickel cathode and 2,000 tonnes of cobalt cathode per year. Refurbishment and recommissioning are progressing during 2026 and 2027, with operational ramp-up scheduled for 2027.
Brownfield refurbishment under way
The restart involves an existing brownfield processing facility, giving the project a different development profile from a newly constructed refinery. Existing buildings, utilities and processing infrastructure can reduce construction requirements, project duration and replacement costs. The same infrastructure can create additional rehabilitation requirements. Equipment condition, corrosion, compatibility of control systems and the amount of refurbishment required after an extended period outside normal operation remain factors in the recommissioning programme.
São Miguel Paulista’s processing model also allows the facility to source material internationally. The refinery is intended to handle imported MHP and cobalt hydroxide, providing a feedstock structure that is not dependent on a single Brazilian mining operation.
Brazilian refinery linked to Jervois’ Finnish operations
The project’s connection with Europe extends beyond its designation under the EU Critical Raw Materials Act. Jervois also operates cobalt-refining and specialty-product activities in Kokkola, Finland. The two operations could support coordination in feed procurement, customer qualification and product marketing between Brazil and Europe. This creates a potential link between Brazilian refined-metal production and Jervois’ established European processing and specialty-products activities.
The commercial performance of São Miguel Paulista will depend heavily on the relationship between imported intermediate-feed costs and the prices achieved for refined nickel and cobalt. Maintaining reliable feedstock supplies will therefore be central to sustaining refinery utilisation.
Long-term supply contracts would provide greater certainty over feed availability, while qualified customers would be required to support sales of the refined products. Without those arrangements, the refinery would remain exposed to spot-market treatment charges and fluctuating refining margins.
Financing requirements remain alongside recommissioning
The refinery’s previous financial difficulties also form part of its restart history. Jervois underwent financial restructuring, and the earlier restart programme was affected by delays during the nickel and cobalt market downturn. Strategic status under the EU framework does not remove the project’s financing requirements. The restart requires working capital, inventory finance and sufficient liquidity to cover the period between purchasing intermediate feedstock and receiving payment for refined nickel and cobalt. The planned 2027 ramp-up will therefore involve both technical recommissioning and commercial execution, with sustained throughput, product quality and secure feedstock forming the principal operating requirements for the restarted refinery.
